UTM and Strong Regional Markets Drive Security Appliance Growth in Q4 2018, According to IDC

FRAMINGHAM, Mass.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/IDCTracker?src=hash” target=”_blank”gt;#IDCTrackerlt;/agt;–According to the International Data Corporation (IDC)
Worldwide
Quarterly Security Appliance Tracker
, the total security appliance
market experienced positive unit shipment and revenue growth in the
fourth quarter of 2018 (4Q18). Worldwide revenue increased 16.7% year
over year in 4Q18 to $4.5 billion. Unit shipments experienced similar
growth, increasing 20% year over year to nearly 1.1 million units.

The Unified Threat Management (UTM) market segment continued to account
for the most significant worldwide revenue growth. This segment
accounted for over $220 million more in revenue for 4Q18 than in 3Q18.
Despite being the largest overall segment, UTM grew by 19.7% year over
year and now accounts for 50.9% of the worldwide security appliance
market in 4Q18. Additionally, Web security and Messaging security
continue to show strong signs of growth, increasing by 5.5% and 18.1%
year over year, respectively. Hybrid VPN and IPsec VPN were the only two
market segments to experience declining revenue this quarter, with
Hybrid VPN declining by 10.4% year over year and IPsec VPN declining by
20.1% year over year.

Regional Highlights

The United States accounted for 36.7% of total security appliance market
revenue in 4Q18, which is down from 39.5% in 3Q18 but up from 36.0% in
4Q17. Asia/Pacific (excluding Japan) (APeJ) grew 19.1% year over year,
while the Middle East and Africa (MEA) region grew 31.8% year over year.
UTM, Web security, and a renewed interest in Email security are pushing
growth in North America and Europe, while Firewall and IPS remain
important for APeJ and MEA.

“The fourth quarter closed out the year on a strong note with
double-digit sequential and annual growth, largely stemming from
increased UTM penetration worldwide and strong regional growth in the
Asia/Pacific and Middle East regions,” said Pete
Finalle
, senior analyst, Security
Products
.

 
Top 5 Vendors, Worldwide Security Appliance Revenue, Market
Share, and Growth, Fourth Quarter of 2018
(revenue in US$
millions)
Vendor  

4Q18
Revenue

 

4Q18
Market
Share

 

4Q17
Revenue

 

4Q17
Market
Share

 

4Q18/4Q17
Growth

1. Cisco   $627.5   14.1%   $546.0   14.3%   14.9%
2. Palo Alto Networks   $569.6   12.8%   $430.9   11.3%   32.2%
3. Fortinet*   $441.4   9.9%   $375.1   9.8%   17.7%
3. Check Point*   $426.2   9.5%   $418.4   10.9%   1.9%
5. Symantec   $186.0   4.2%   $174.0   4.5%   6.9%
Others   $2,214.7   49.6%   $1,882.0   49.2%   17.7%
Total   $4,465.3   100%   $3,826.3   100%   16.7%
Source: IDC Worldwide Quarterly Security Appliance Tracker Q4 2018,
March 7, 2019

* Note: IDC declares a statistical tie in the worldwide
security appliance market when there is a difference of one percent or
less in the share of revenues or shipments among two or more vendors.

In addition to the table above, a graphic illustrating the worldwide
revenue market share for the top 5 security appliance companies over the
previous five quarters is available by viewing this
press release on IDC.com
.

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lfernandez@idc.com
305-351-3057

Michael
Shirer
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